The home electronics sector accounts for the largest share of online retail in Switzerland. But how sustainable is online shopping compared to bricks-and-mortar shopping? And are consumers prepared to pay more and accept longer delivery times for more sustainability when shopping? The ZHAW researchers came up with very different answers that show the advantages and disadvantages of both types of consumption.
Online retail in Switzerland continues to grow. The home electronics sector in particular received another strong boost from the coronavirus pandemic. In 2021, the share of online retail in the home electronics sector (which in Switzerland includes consumer electronics, IT/office equipment, telecoms, photography, small household appliances and multi-technical goods) was 50%, making it the largest online retail segment. By comparison, goods from the fashion/shoe sector account for 30 percent.
A team of researchers from the ZHAW Institute for Sustainable Development (INE), consisting of Maike Scherrer, Viola Rühlin and Patrick Doege, examined both types of retail in their study "Which is actually more sustainable? The effect of brick-and-mortar and online retail on sustainability in the home electronics trade", they examined both types of retail with regard to several sustainability dimensions and included the perspective of consumers and companies with a focus on sustainability through surveys.
A look at consumer behavior (for which the authors of the study conducted online surveys) shows that 52 percent of home electronics purchases in German-speaking Switzerland are made in brick-and-mortar stores and 41 percent online. The 21- to 39-year-olds prefer online purchases, while other age groups tend to use bricks-and-mortar stores. Men buy more home electronics online (46%) than women (35%). The reasons given for buying online are time savings (67%), attractive prices (62%), price comparison options (55%) and greater choice (52%). In stationary retail, haptics (70%) and competent advice (67%) are important factors. In addition, a quarter of respondents buy home electronics abroad, primarily from Amazon (78%). Cheaper prices (72%) and greater choice (49%) are the main motivations here. Expert interviews with the Swiss Retail Association show that the ecological footprint can be reduced on the retail side through the sustainable provision of products. In stationary retail, the CO2 footprint depends on the means of transportation. In e-commerce, retailers can offer sustainable delivery options using electric or hydrogen vehicles. The bundling of orders is proving to be an important sustainability aspect, as same-day delivery increases the CO2 footprint. Innovative delivery options, such as consolidated pick-up points or delayed delivery for less urgent orders, contribute to sustainability.
The authors of the study look at the question of the sustainability of the two types of consumption, taking into account three sustainability dimensions. In addition to ecological, economic and social sustainability factors play an equal role in the assessment of the type of purchase. From an ecological point of view, online shopping is a winner when bundled postal deliveries mean that longer journeys to the store by car can be avoided. The situation is different if customers can get to the store on foot or by bike. For large appliances that cannot be transported by bike, the authors recommend buying the product online, as this creates less ecological footprint than traveling by car due to the bundling by logistics service providers. The consumer survey shows that a majority (57%) are willing to choose a more environmentally sustainable shopping option for home electronics if the price difference is not significant. 23 percent would do this regardless of price and seven percent if delivery times were not significantly longer. Only 13 percent would not be prepared to buy more sustainably at all.
Looking at the economic dimension, it is clear that companies can not only save CO2 and costs through sustainable supply chain management in procurement and delivery, but can also gain a stronger competitive position as a result. However, tax avoidance practices are easier to implement in online retail than in bricks-and-mortar retail, for example by centralizing storage facilities in a tax-friendly canton. Online retailers are also reducing the number of decentralized jobs throughout the country. In economic terms, e-commerce therefore does not contribute to greater economic sustainability in trade and leads to a loss of welfare for the economy. Taking the social sustainability dimension into account, e-commerce also offers no opportunities for social interaction compared to shopping in stores. However, a majority of 60 percent of consumers surveyed are willing to choose a more socially responsible way of ordering home electronics, provided that it does not make the purchase significantly more expensive.
To summarize, the sustainability of home electronics purchases depends on where you live and the decision you make. In the city, shopping in a store that can be reached on foot or by bike is more sustainable than online shopping. In rural areas, on the other hand, online shopping is the more sustainable option, as logistics service providers can save journeys by bundling them, which would be duplicated by the return trip to the stationary store when buying privately. The respective strategies of home electronics retailers and the delivery methods they offer are also an important factor in terms of sustainable consumption. It is therefore not possible to give a clear answer as to which type of shopping is the most sustainable, as it depends on several factors. From the consumers' point of view, there is no clear preference for bricks-and-mortar or online retail, but the majority are prepared to choose the more sustainable way of shopping if they do not have to compromise on price.